Indiana Manufacturer’s Penalty: $338,151 in Overtime Back Wages and Damages

Indiana Manufacturer’s Penalty: $338,151 in Overtime Back Wages and Damages

Indiana Manufacturer’s Penalty: $338,151 in Overtime Back Wages and Damages

Elkhart, IN – Recreational vehicle parts manufacturer Lippert Components will pay $338,151 in overtime back wages and liquidated damages to 1,199 current and former employees following an investigation that found violations of the overtime requirements of the Fair Labor Standards Act (FLSA) at 53 plants nationwide.

WHD investigators found that when determining overtime rates, the employer ­­failed to include in the calculation certain bonuses employees had earned. Instead of computing overtime at time-and-one-half employees’ total straight time earnings, including these bonuses, the employer based that calculation only on employees’ pre-bonus earnings. Excluding the bonuses resulted in artificially lowered overtime rates, violating the FLSA.

Here’s What You Should Know:  Whether bonuses are to be included in an employee’s regular rate of pay calculated for overtime purposes is complicated and easy to mess up.  If the bonus is non-discretionary meaning owed if the employee meets specific criteria or goal, then the bonus must be part of the regular rate of pay calculation.  Only discretionary bonuses which are completely voluntary can be excluded.

Find more assistance from the WHD on this topic: Click Here.

Source:  https://www.dol.gov/newsroom/releases/whd/whd20181005

 

Learn from some other recent examples of the DOL moving with force on compliance.



Send this to a friend